1. UNIT- IV POST IMPLEMENTATION 8
Maintenance of ERP- Organizational and Industrial impact; Success and Failure factors of ERP
UNIT - V EMERGING TRENDS ON ERP 9
Extended ERP systems and ERP add-ons -CRM, SCM, Business analytics - Future trends in ERP
systems-web enabled, Wireless technologies, cloud computing.
Maintenance of ERP- Organizational and Industrial impact; Success and Failure factors of ERP
What are the benefits of Supply Chain Management (SCM)?
SCM can help you transform a traditional linear supply chain into an adaptive network with the
With the increased visibility into the supply chain and adaptive supply chain network,
you can be more responsive. You can sense and respond quickly to changes and quickly
capitalize on new opportunities.
By offering a common information framework that supports communication and
collaboration, SCM enables you to better adapt to and meet customer demands.
You can track and monitor compliance in areas as environment, health and safety.
Information transparency and real-time business intelligence can lead to shorter cash-to-
cash cycle times. Reduced inventory levels and increased inventory turns across the
network can lower overall costs.
With SCM, you can lower operational expenses with timelier planning for procurement,
manufacturing and transportation. Better order, product and execution tracking can lead
to improvements in performance and quality - and lower costs. You can also improve
margins through better coordination with business partners.
Tight connection with trading partners keep your supply chain aligned with current
business strategies and priorities, improving your organization's overall performance and
achievement of goals.
2. How will Customer Relationship Management (CRM) help my business?
The eresource ERP CRM module helps you know your customer better and includes
many features such as activities, history, related contacts, addresses of your customers
and their relations with your competitors. The flexible database structures enables you
whatever information you would like to keep on your customer and maintains such
information for your future reference.
The eresource ERP CRM module also facilitates control and organization of entire sales
process, from offer to invoice. It empowers your sales staff by providing details such as
inventory status, estimated costs and delivery time, risk status, habits and special
demands, and previous trades during offer stage.
The eresource ERP CRM module offers an effective customer complaint management
tool which also includes repairs processing and document management.
Is classroom study key to successful ERP implementation?
The introduction of Information Technology, especially enterprise systems such as enterprise
resource planning (ERP) systems, is a common way of implementing organizational change
today. Such enterprise system implementations frequently come with new software systems and
business processes that substantially alter workflow and jobs.
While the annual investment of several millions of rupees in ERP systems is staggering,
estimates indicate that there could be chances of failures in implemented systems and such
failures have been observed even in highly successful organizations. Organizations that
successfully implement ERP systems, including new software and business processes, have
reported enormous benefits, such as greater efficiency and effectiveness at the individual
employee and organizational levels.
One of the primary causes of failure is the inability of managers to effectively manage the
change process. Managers frequently fail to consider the organizational environment and culture
relying, instead, on success stories of some organizations that used a big-bang strategy, an
implementation strategy in which all modules of an ERP system are implemented simultaneously
and in a short period time, to manage their own change. The result can be catastrophic for firms,
with consequences up to and including going out of business as a result of a failed ERP
Given this backdrop, it is important to teach diverse aspects of ERP implementations to make
today's information systems and business management curricula relevant to organizational
practice. Yet, the effective integration of ERP related knowledge into curricula continues to be a
challenge with some suggesting that relevant knowledge should be imparted in a wide range of
classes. Of the many areas related to ERP systems, the ability of students to understand that
3. different strategies of ERP implementation may be necessary in different scenarios is an
important one, especially for those who may go on to manage such implementations.
A "one-medicine-does-not-cure-all-ailments" argument goes well with when it comes to ERP
implementation strategies. Yet, mistakes and failures continue. Sorely needed is a teaching
approach that can open the eyes of managers, present and future, to the different strategies to
ERP success, and when a particular strategy is appropriate. With a good teaching approach with
minimum three cases of examples could help the student identify the areas where a failure is
bound to happen and may rectify it. It is also a must that each student is assigned to read only
one of the three cases, lessening the total workload, but the students understand the differences in
approaches and successes of ERP implementations related to all three cases.
Why Indian ERP system best suited for Indian industries?
Enterprise Resource Planning (ERP) Solution software should address all the needs of an
enterprise within the social context of the country in which the enterprise operates. This would
imply that the local accounting practices, locally applicable taxation laws are fully adhered to in
implementing the various business processes.
Many imported ERP software systems must incorporate India specific features before
implementation as per the specifications of its client, where as an Indian ERP solution has
already been programmed to take care of the national industry's interest.
Another feature of an India-made ERP like eresource ERP software system is its design. It has
been designed to cater the need of the Indian users with fully knowing their working
environment and requirements.
Industries also consider easy accessibility to their solution providers while choosing the right
ERP for their enterprises. It also to be noted that eresource Infotech serves all our customers
equally, unlike some overseas vendors who have a strategy to serve only large clients.
Cost factor also stands as one of the reasons why Indian ERP solution is best suited for Indian
industries. Many a time the huge cost involved in it scares away industries from implementing
ERP solution, depriving the benefits the system could offer. To overcome this precarious
scenario, eresource ERP has introduced an affordable ERP, keeping in mind the Indian
industries, specially the small and medium scale enterprises.
Being a student, I would like to know more about Benefits of ERP
Here is a quick look at the ERP Benefits
To say in short, ERP systems integrate all business management functions, including planning,
inventory/materials management, engineering, order processing, manufacturing, purchasing,
accounting and finance, human resources, and more.
4. ERP software programs are being developed and updated all the time. There are different types
of ERP software brands available in the market, but companies must choose the right ERP
system to suit their needs. India's leading web-based ERP solution providereresource ERP even
offer mobile capabilities so that you can always have a finger on the pulse of your business
The biggest advantage of an ERP system is with its real time capabilities and the ability to see
what is going on with your company as it happens. It is handy when you deal with high volume
of business process. With an ERP system, your company will never have inventory shortages or
wasted time spent transferring files.
An ERP system provides the solid operational backbone. The system enables the Manufacturers
and distributors to function promptly, which will able to improve the volume of production and
fulfillment of orders while reducing costs. By optimizing manufacturing and distribution
operations with ERP, the companies are also be able to focus on new business opportunities.
Here is a quick look at the benefits the ERP system has to offer:
Streamlining processes and workflows with a single integrated system.
Reduce redundant data entry and processes and in other hand it shares informartioin
across the department.
Establish uniform processes that are based on recognized best business practices
Improved workflow and efficiency
Improved customer satisfaction based on improved on-time delivery, increased quality,
shortened delivery times
Reduced inventory costs resulting from better planning, tracking and forecasting of
Turn collections faster based on better visibility into accounts and fewer billing and/or
Decrease in vendor pricing by taking better advantage of quantity breaks and tracking
Track actual costs of activities and perform activity based costing
Provide a consolidated picture of sales, inventory and receivables
success and failure factors of erp implementation
For many companies, the long and sometimes tedious process of selecting an ERP system is
considered easy compared to what awaits next – the ERP implementation. Clearly, the ERP
implementation is as equally important as the selection process, although an implementation is
widely considered a more complex and daunting project which can be quite disruptive to a
business especially if things go wrong. That can be validated just by reading the numerous
horror stories in the industry press about massive scale ERP failures experienced by some of the
leading and well-known global brands. The social media sphere takes that a step further and
features countless blogs, tweets or postings by users musing about unmet expectations from their
ERP implementations. It’s not surprising then that most companies feel a deep sense of
5. apprehension over a pending ERP implementation. While virtually any ERP implementation can
be complex and challenging, a successful implementation can be the norm and not the exception.
Over the years, market analysis and industry research have thoroughly studied the primary root
causes of most ERP failures. It is the proactive addressing of these causes which undoubtedly
will help ensure an ERP project ends as a success story rather than a failure, which can cost a
company untold sums of money, wasted time and resources and damage the bottom line. Below
are the Top 10 Critical Success Factors which directly address those root causes of ERP failures
and offer a framework to a successful implementation. These are not revolutionary or even new
ideas, but ones that have been used by myself and my consulting colleagues here for hundreds of
successful ERP implementations in a variety of industries. These Success Factors are tried and
tested and offer real world consulting insight into the most challenging of IT projects: the ERP
implementation. Outlined below are the Success
Factors which are critical to the successful deployment of an ERP solution:
1. Strong Executive Sponsorship
2. Focused Project and Scope Management
3. Minimize / Eliminate Customizations
4. Approved Solution Design
5. User/SME Participation and Engagement
6. Process Owner Led User Training and Sign-off
7. Documented User Procedures
8. Targeted Data Migration Strategy
9. Thorough System Testing
10. Knowledge Transfer
In subsequent blogs, I will discuss each of these factors and how technology planning, strategy,
design, scope of process changes, testing, level of customization and the “people effect” all
influence a successful implementation.
Implementation of an ERP system does not have to be painful or cause anxiety throughout the
management ranks. With the proper planning and execution of these Success Factors by a
company and its IT partner, an ERP implementation can be a smooth process and one that
quickly delivers efficiency and ROI across the business. In the next blog, I’ll discuss the first
three “Critical Success Factors.”
Analysis of Critical Failure Factors
Critical failure factors were assessed based on the information suggested by participants and
triangulated from the documents describing the ERP implementation (ERP project plan,
meeting minutes, email communications and so on).
The determination of critical failure factors is based on
6. (1) an understanding of the ERP implementation process from the information given by
(2) each participant’s critical failure factors (validated using secondary source evidence, e.g.,
implementation related documents, email communications and meeting minutes) and
(3) a relative comparison of the most important critical failure factors with the approval from the
chief informant (such as the project manager).
The fourteen critical failure factors were identified as follows:
Critical Failure Factors for ERP Implementation
1. ERP system misfit
2. High turnover rate of project team members
3. Over-reliance on heavy customization
4. Poor consultant effectiveness
5. Poor IT infrastructure
6. Poor knowledge transfer
7. Poor project management effectiveness
8. Poor quality of Business Process Reengineering (BPR)
9. Poor quality of testing
10. Poor top management support
11. Too tight project schedule
12. Unclear concept of the nature and use of ERP system from the users’ perspective
13. Unrealistic expectations from top management concerning the ERP System
14. Users’ resistance to change
ERP Implementation Transition Strategies :
An ERP implementation strategy determines how the ERP system will be installed. Different
industries may install the same
There are several transition strategies but most of them are variants of the five basic types:
a) Big Bang
d) Process Line
These techniques focus on the strategy of how to make the transition from a legacy system to a
new ERP system. ERP implementations all begin with the simple question- how do we make the
transition from our inheritance ERP system to new ERP system? The selection of the transition
strategy that is best suited for each industry is crucial as a wrong strategy can result in a failed or
7. flawed implementation. Three pillars-people, process and technology are the base of any ERP
Failure to use one of these or failure to use it in the best possible manner can result in failure.
Understanding the relationships of ERP transition strategies between the process, people, and
technology will assist the ERP implementers to better understand what type or combination of
types of ERP transition strategy is best.